Published: February 22, 2024 at 6:48 a.m. ET
Planet Fitness Inc. PLNT stock headed toward a three-month low in pre-market trading Thursday after the fitness center operator beat fourth-quarter profit estimates but gave a lower outlook for growth this year. It fell 1.3%. Net income increased to $35.3 million, or 41 cents per share, from $33.7 million, or 40 cents per share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share were 60 cents, beating the FactSet consensus of 58 cents. Total revenue rose 1.4% to $285.1 million, beating the FactSet consensus of $282.7 million, driven by franchise revenue up 13.9% to $98.2 million and corporate ownership.
Stocks of Planet Fitness Co., Ltd.
PLNT
Shares fell 1.3% in pre-market trading Thursday, hitting a three-month low after the fitness center operator beat fourth-quarter profit estimates but forecast weaker growth this year. Ta. Net income increased to $35.3 million, or 41 cents per share, from $33.7 million, or 40 cents per share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share were 60 cents, beating the FactSet consensus of 58 cents. Total revenue rose 1.4% to $285.1 million, beating the FactSet consensus of $282.7 million. This was as franchise revenue increased 13.9% to $98.2 million and corporate ownership revenue increased 15.9% to $116.4 million, while equipment revenue decreased 25.5% to $70.4 million. We expect adjusted EPS to grow in the range of 10% to 11% in 2024, with sales growth of 6% to 7%, while the FactSet consensus for EPS of $2.51 implies 12.1% growth. and sales of $1.155 billion represent growth of 7.8%. growth. CEO Craig Benson said 2024 is a “year of transition” for franchisees, with a new growth model focused on reducing capital requirements to open and maintain franchise locations. ”, he said.The stock has fallen 9.8% year-to-date through Wednesday, compared to the S&P 500.
SPX
It rose by 4.4%.
